No Monetary Policy Easing Yet
Kiwi Mortgages
by amitkumar
1M ago
News with Tony Alexander – February 2024   The chances are very high that at some stage this year the Reserve Bank will capitulate to the evidence of falling inflation and announce monetary policy will be eased a lot sooner than the second half of 2025 which they have pencilled in. Their reluctance to express any happiness about the inflation track currently is perhaps understandable when we consider these important points. The ANZ’s monthly Business Outlook Survey shows that a net 50% of businesses plan raising their selling prices over the coming year. This is only slightly lower th ..read more
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Monetary policy outlook better for 2024
Kiwi Mortgages
by amitkumar
4M ago
News with Tony Alexander – December 2023 Central banks sometimes like to surprise the financial markets in order to keep people on their toes. But that is not what has just happened here in New Zealand. This week the Reserve Bank conducted their regular review of the official cash rate and met universal expectations of no change. The rate still sits at the 5.5% level it was taken to at the end of May this year. The next review of the cash rate doesn’t happen until the end of February and by the time we get there we will have in hand a lot more data on the New Zealand economy and a lot more inf ..read more
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Inflation Rate
Kiwi Mortgages
by amitkumar
5M ago
News with Tony Alexander – November 2023   On the face of it one might think that news three weeks ago of New Zealand’s inflation rate falling to a lower than expected 5.6% from the previous 6% and the peak of 7.3% might cause some sizeable easing of wholesale interest rates. Unfortunately for borrowers this has not proved to be the case. The one year swap rate at which banks borrow money domestically to lend fixed for one year has only retreated to near 5.7% from 5.9% a month ago while the three year rate has only eased to 5.4% from 5.5%. Six months ago these key rates were 5.7% and 4 ..read more
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Refinance Mortgage with Better Interest Rates & Terms
Kiwi Mortgages
by amitkumar
6M ago
Refinance Mortgage with Better Interest Rates & Terms It is always a good idea to keep reviewing your home loan portfolio to ensure it is still helping you meet your financial objectives and is correctly structured suiting your cash flow and is helping you meet your objectives. Refinancing is one of the tools that people often use to realign their home loan portfolio to their current situation. The change in your financial situation may warrant a review, which in turn may result in refinancing to another lender. Such changes in your financial situation may include changes in your hou ..read more
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Rising Interest Rates & House Prices
Kiwi Mortgages
by amitkumar
6M ago
Rising Interest Rates & House Prices     News with Tony Alexander – October 2023 Last month, I wrote about the divergent impacts on interest rate movements in New Zealand coming from China and the United States. The outlook for China’s economy is relatively weak and that means weak demand for New Zealand commodity exports which in turn means falling incomes for our farmers and that means weaker growth for the New Zealand economy. The Reserve Bank’s intention when raising interest rates is that the pace of growth in the economy slows down and this reduces the ability of businesses ..read more
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China weakness bears watching
Kiwi Mortgages
by amitkumar
7M ago
China Weakness Bears Watching   News with Tony Alexander – September 2023 My thoughts about what the optimal interest rate risk strategy is for most home buyers haven’t changed much over the past month even though there are a few fresh items to consider regarding prospects for our growth and inflation. On the good side for inflation we have in hand data showing that retail spending volumes fell by 1% during the June quarter, or by 1.8% if we focus on core areas of spending. This is a greater decline than expected and suggests that the Reserve Bank could be achieving greater weakness in co ..read more
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More Solid Upturn Signs
Kiwi Mortgages
by amitkumar
8M ago
News with Tony Alexander – August 2023 The list of indicators showing improvement in the residential real estate market around the country on average has continued to grow over the past four weeks since my previous column. From the REINZ we have data in hand showing that after adjusting for seasonal factors sales rose almost 20% in the June quarter while prices in the month of June improved by 0.7% after sitting flat over the previous two months. From my latest survey of residential real estate agents we can see that for the first time since the very end of 2021 there is a greater proportion o ..read more
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Low Deposit? – Kainga Ora First Home Loan Scheme
Kiwi Mortgages
by amitkumar
8M ago
Low Deposit? – Kainga Ora First Home Loan Scheme Anyone who is eligible as per the eligibility criteria can apply but it clearly helps younger people who just started their career, have good income but not enough deposit yet. Kainga Ora First Home Loan Scheme helps people with the first stumbling block – not having enough deposit, provided they are eligible and qualify on other parameters. The normal standard requirement for deposit with most banks is 20%. Banks may consider your application at less than 20% deposit but the assessment criteria get more and more difficult. Besides, currentl ..read more
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When will Interest Rates come down?
Kiwi Mortgages
by amitkumar
9M ago
When will Interest Rates drop?   Customers often ask me, these days more so than ever before – will the interest rates fall any time soon? I tell them your crystal ball is as good as mine. No one can predict the interest rate movement with any degree of certainty. It is currently believed in the market (keeps changing all the time as variables change) that the OCR might have near peaked, and the interest rates could potentially settle down towards the end of this year or early next. However, The ANZ Bank says it is premature to believe that the Reserve Bank has done with OCR hikes and int ..read more
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Housing Market Turning Upward
Kiwi Mortgages
by amitkumar
9M ago
News with Tony Alexander – July 2023 In the middle of the column I wrote here last month I mentioned that FOMO had yet to pick up. The data and my surveys suggested that although the housing market was bottoming out people did not display any evidence of a sense of urgency. Now, one month later, that is changing. I have just completed my monthly survey of residential real estate agents undertaken with REINZ. I’ve been running this survey since the first pandemic lockdown early in 2020 and it provides coalface insights into what is happening in the real estate market. It showed the frenzy of mi ..read more
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